Thursday, March 18, 2010

A Galley slave rowing toward the edge of the Earth

Consumer prices were down slightly last month which sounds like something that would always be a good thing but in the world we live in, it is not. But on the Flat Earth business model, US consumer goods are almost entirely made in China and they have been manipulating their currency to keep prices down. The decline in US consumer prices simply tracks the further decline of American manufacturing. The flat earthers would say this a good thing since everything is cheaper. Okay, if you still have a job and your pay hasn’t been cut, except for your taxes going up to pay the share for all of the people whose jobs went to China and can’t pay taxes anymore. It’s still okay they say, except that the collapsing economy is driving down the value of your house and your 401k or if you own a small business it’s eating that up too.

Initial jobless claims were down slightly last week but still a hundred thousand a week above the number that signals job creation. But wait you say, that would mean we are losing 400,000 jobs a month and the government says the number of jobs lost is less than a 100,000 each month. Don’t short out your tin foil hat, the government isn’t cooking the books. They just aren’t looking for the problem. Business is rehiring almost as many workers as they fire but not as hourly employees. They are loading up with low paid temps and converting the better jobs to contract labor. They wouldn’t do this if they could just buy cheap slaves but driving down wages and eliminating benefits will have to do.

These “non” employees are also easy to get rid of if business activity turns down, slaves would need to fed and hard to sell in a weak economy. “Flexibility” in labor is a basic tenet of the Flat Earth business model. When the double dip comes there will be millions of new “unemployed” who will have no eligibility for benefits and will need to be supported by the tax payer or left to die in the street. Either option works fine for the Flat Earth business model. Two thirds of corporations in the US pay no taxes now and lobby their Congress very hard make law another tenet of the Flat Earth business model; no taxes for corporations or for the people who own them.
The end game for the Flat Earth business model is to end government as we know it. “… drown it in the bathtub.” is the oft repeated quote from Grover Norquist. Cutting taxes and increasing spending until government simply can’t pay its bills is the strategy. We are getting close to where they think they can make this happen. It’s a Flat Earth and we’re heading for the edge.